QUESTION 16 The market for breakfast cereals is dominated by four producers: Kellogg's, General Mills, Post Foods, and Quaker. The market contains hundreds of similar types of cereals, such as Frut Loops, Comflakes, and Rice Krispies, that are seen by buyers as different products. This situation violates the perfect competition assumption of Oa ease of entry b. a standardized product. Ocease of exil Od many buyers and sellers.
QUESTION 16 The market for breakfast cereals is dominated by four producers: Kellogg's, General Mills, Post Foods, and Quaker. The market contains hundreds of similar types of cereals, such as Frut Loops, Comflakes, and Rice Krispies, that are seen by buyers as different products. This situation violates the perfect competition assumption of Oa ease of entry b. a standardized product. Ocease of exil Od many buyers and sellers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:QUESTION 16
The market for breakfast cereals is dominated by four producers: Kellogg's, General Mills, Post Foods, and Quaker. The market contains hundreds of similar types of cereals, such as Frut
Loops, Comflakes, and Rice Krisples, that are seen by buyers as different products. This situation violates the perfect competition assumption of
O a ease of entry
b.a standardized product.
Ocease of exit.
Od many buyers and sellers.
QUESTION 17
The profit-maximizing level of output for a perfectly competitive firm in the short run occurs where
O a total revenue: total cost
Ob. average revenue; marginal cost
c. marginal cost marginal price
Od marginal revenue, price
QUESTION 18
The marginal revenue received by a firm in a perfectly competitive market
a. is the change in total revenue divided by the change in output
O b. is less than the market price.
Oc is unrelated to the market price
Od.is greater than the market price
equals
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